Filmmakers Take Legal Action Against Chicken Soup for the Soul Entertainment as It Faces ‘Cash Flow Issues’
variety.comAddie Morfoot Contributor A number of directors are pursuing litigation against the digital indie film distributor 1091 Pictures for failing to make promised revenue-sharing payments after selling their films to the platform, now owned by Chicken Soup for the Soul Entertainment.
Helmers are scrambling to reclaim distribution rights to their work out of fear that 1091 Pictures’ parent company could declare bankruptcy.
Filmmakers say they are owed their share of distribution revenue from licensing deals with 1091 but Chicken Soup for the Soul Entertainment has not come through with payments.
Some have taken the company to court, including small-claims court, to press their cases. Chicken Soup for the Soul Entertainment acknowledges that the company, which also owns Redbox and Crackle, has faced “cash flow issues,” as CEO Bill Rouhana told Variety.
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